Batelco, PCCW and Verizon get Saudi phone OK

RIYADH, Feb 25 (Reuters) - Consortiums led by Bahrain Telecommunications Co BTEL.BH (Batelco), Hong Kong's PCCW (0008.HK) and U.S. Verizon Communications (VZ.N) won final approval on Monday to operate new Saudi fixed-line phone networks.

The official news agency SPA said the Saudi cabinet approved a decision under which the three new firms set up to operate the fixed-line services would sell 25 percent of their shares in initial public offerings, 10 percent to a state pension fund and 5 percent to a social insurance body.

Saudi Arabia, the largest Arab economy, had given initial approval to the three groups in April after short-listing them from 10 applicants for licences to end the monopoly of state-controlled Saudi Telecom Co 7010.SE (STC).

The consortium of Bahrain Telecom (Batelco) and Saudi Arabia's Atheeb group plans to invest $1 billion in its fixed-line operation in the first five years of business, Atheeb's chairman said on Sunday.

Saudi Arabia had liberalised mobile phone services earlier.

STC lost its mobile monopoly to Etihad Etisalat 7020.SE (Mobily) in 2005, while a consortium led by Kuwait's Zain (ZAIN.KW) won a third mobile licence in March. (Writing by Firouz Sedarat; Editing by David Holmes)